Money used to purchase goods or services is functioning as a
A) unit of account.
B) store of value.
C) standard of value.
D) medium of exchange.

Question

Quizplus · Accepted Answer

Money used to purchase goods or services is functioning as a medium of exchange, meaning that it is being used to facilitate the transaction between the buyer and the seller. While money can also serve as a unit of account (used to measure value) and a store of value (used to save purchasing power for future use), those functions are not relevant to the immediate act of purchasing goods or services. The term "standard of value" is sometimes used interchangeably with unit of account, but strictly speaking refers to a set of criteria or principles used to determine the value of something (such as a particular type of investment or asset).

Money Used to Purchase Goods or Services Is Functioning as a